Sunday evening 15 pip gap up open followed by initial mostly sideways action. The highlighted pinbar doesn’t mean anything to me until the following fade downward, slow reverse & impulsive break of the Tenkan. At that point I see the top of the pinbar as a likely magnet & resistance, and I look for entries […]
In the last couple posts I talked about vertical spreads in the SPY. A Butterfly or a Condor is a combination of bullish and bearish vertical spreads. There are many variations – An out of the money bullish position composed of all calls is a “call fly” An out of the money bearish position composed […]
In my previous post I set up a vertical spread in SPY at end of day 8/12, the leftmost highlighted day on this chart. If you look back to the risk graph of either vertical you’ll see a line at 171, that’s because I want to be able to hedge most losses up to that […]
Strategically an Equity Option Position is similar to a long term Binary Option that you can exit or adjust at any time. The value of the position changes over time in a predictable way that can used to fit your market view so that you have a position that will be profitable & easy to […]
This morning the AUD/USD demonstrated an important point about how price interacts with the ichiMoku system. RHS there is an incentive reversal move, looking for a pullback to enter. The highlighted Blue & Green candles in the center look like a good spot – the chikou is just breaking free, the EMA cloud is still […]
In “An ace on the River” Barry Greenstein talks about an important poker concept that is the basis for why you should be interested in trading traditional options as well as Binaries, Forex & Futures. It’s the idea of perfect play vs correct play. If you knew your opponents cards at each point in a […]
LHS incentive move downward but no follow through & the chikou does not clear the Kumo. Followed by incentive move through EMAs and Kumo with clear chikou that does hold, resulting in entries. The first two entries are good for 30 to 35 ticks. That’s a pretty big move and the chikou is running into […]
I’m a trend trader. I trade levels, but always within a trend. The vast majority of my trades – Futures, Forex, Binaries or Equity Options – are with trend. Where trend is defined by a combination of the Kumo and a couple moving averages. In my view a reversal is a trend on a smaller […]
Mid to late morning US session – bottom, top & then bottom of Kumo are respected. Incentive break of Kumo & averages, pullback into averages for entry – good for about 10 ticks. Morning Asian session – Incentive move through the averages & into the Kumo. Pullback into moving averages for entry – good for […]
The yellow line is an incentive move from the Kumo – location is good, Momentum Band twisted, ADX turned trend & chikou is clear. The close of the blue Hammer is a good spot entry. A little consolidation into the Momentum Band is fairly likely though so it’s not a good binary bet. Oval 1 […]